2017 PS wag
02-09-2018, 01:17 PM
#161
Gets Weekends Off
Joined APC: May 2014
Position: 787 right
Posts: 504
Originally Posted by APC225
Great idea for those who will be hitting the income level that causes the 16% match to spillover.
02-09-2018, 04:38 PM
#162
Gets Weekends Off
Joined APC: Jun 2014
Posts: 154
Originally Posted by Half wing
Does anyone know if it possible to fund a back door Roth IRA by over funding the 401k with post tax funds? 18.5k pre-tax plus another 5.5k post tax. Then transfer the 5.5k post tax to a Roth IRA?
Once you contribute the full IRS individual limit, 18,500/6,000 catchup over 50, you can contribute as much as you’d like up to the 415C limit of $55,000; which includes the 16% B/C contributions. Since you’ve already paid taxes on this money, you can have Schwab send you paperwork to transfer all post tax contributions to a ROTH 401K account (within the same PRAP/PRCA rather it just characterized differently)
THEN, you can additionally put another $5,500/$6,500 if 50+ into a separate Post-tax non-deductible IRA. ($11,000/$13,000 if your married combining your account and your spouses) Immediately backdoor ROTH it and then file your 8606 with your taxes to acknowledge what happened.
02-09-2018, 08:12 PM
#163
Gets Weekends Off
Joined APC: May 2014
Position: 787 right
Posts: 504
Originally Posted by Davedave
Roth IRA? No. ROTH 401K? Yes. Limited to $5500? No.
Once you contribute the full IRS individual limit, 18,500/6,000 catchup over 50, you can contribute as much as you’d like up to the 415C limit of $55,000; which includes the 16% B/C contributions. Since you’ve already paid taxes on this money, you can have Schwab send you paperwork to transfer all post tax contributions to a ROTH 401K account (within the same PRAP/PRCA rather it just characterized differently)
THEN, you can additionally put another $5,500/$6,500 if 50+ into a separate Post-tax non-deductible IRA. ($11,000/$13,000 if your married combining your account and your spouses) Immediately backdoor ROTH it and then file your 8606 with your taxes to acknowledge what happened.
Once you contribute the full IRS individual limit, 18,500/6,000 catchup over 50, you can contribute as much as you’d like up to the 415C limit of $55,000; which includes the 16% B/C contributions. Since you’ve already paid taxes on this money, you can have Schwab send you paperwork to transfer all post tax contributions to a ROTH 401K account (within the same PRAP/PRCA rather it just characterized differently)
THEN, you can additionally put another $5,500/$6,500 if 50+ into a separate Post-tax non-deductible IRA. ($11,000/$13,000 if your married combining your account and your spouses) Immediately backdoor ROTH it and then file your 8606 with your taxes to acknowledge what happened.
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